UK-based conglomerate Virgin Group has cancelled plans to raise a new investment fund and is set to wind down its private equity, according to Bloomberg, which cited three people with knowledge of the matter.
Virgin closed $300m for its Virgin Green Fund in 2009 and the unit has since invested in businesses including biofuel developer Gevo, water filtration company Quench and driving analytics provider GreenRoad. Virgin provided about one third of the capital.
However, after failing earlier this year to raise $200 million for a joint venture with Russia-based investment firm Rusnano that would have acquired Central and Eastern European energy assets, Virgin has decided that it will wind down its corporate venturing activities.
Virgin now intends to sell the stakes Virgin Green Fund has in its companies and to return the outstanding capital to investors.